Supervisory Framework

Definition ∞ A supervisory framework denotes a structured system of rules, guidelines, and procedures established by regulatory bodies to oversee and govern specific industries or activities. In the financial sector, it ensures compliance with legal requirements, promotes market integrity, and protects consumers. For digital assets, such frameworks aim to address risks related to money laundering, consumer protection, and financial stability. These frameworks often dictate operational standards.
Context ∞ The development of robust supervisory frameworks for digital assets is a pressing global concern, as regulators strive to adapt existing laws to novel technologies. Discussions often center on balancing innovation with the need for consumer protection and systemic risk mitigation. A critical future development involves international cooperation to harmonize these frameworks across jurisdictions.